Stock Market And Traders.
Few days back I posted the same story in my facebook page, But here read at end of the story for something meaningful
Once upon a time in a village, a man announced to the villagers that he would buy monkeys for Rs 10. The villagers, seeing that there were many monkeys around, went out to the forest and started catching them..
The man bought thousands at Rs 10 and as supply started to diminish, the villagers stopped their effort. He further announced that he would now buy at Rs 20. This renewed the efforts of the villagers and they started catching monkeys again. Soon the supply diminished even further and people started going back to their farms. The offer rate increased to Rs 25 and the supply of monkeys became so little that it was an effort to even see a monkey, let alone catch it! The man now announced that he would buy monkeys at Rs 50!
However, since he had to go to the city on some business, his assistant would now buy on behalf of him. In the absence of the man, the assistant told the villagers. "Look at all these monkeys in the big cage that the man has collected. I will sell them to you at Rs 35 and when the man returns from the city, you can sell it to him for Rs 50." The villagers squeezed up with all their savings and bought all the monkeys.
Then they never saw the man nor his assistant, only monkeys everywhere!
This is the end of the story. Yes this is true, this is how the share market work now a days. If you are there in market for long time and still here then I am sure you are still recovering your losses. Why? Because so far you are one of the villagers in market. The non performing stocks (monkeys) still in your demat account and you are still waiting someone will come and will buy at higher prices.
The man will never come again to buy your monkeys. He is fooling in other village now. He may come in your village to buy donkey but not monkey. And I am sure you will make the same mistake that you made while selling monkeys.
Can we change this system? Unfortunately as a common trader we simply can't but we can fight with this in different way. How? Just be a friend of man and agent in story.
You don't have to become a real friend of man or agent but you have to follow them. How can you follow them? In real market they will not make any announcement that you can listen and act. Here are the simple things you have to follow, If you follow this means you following man and agent.
- Without your serious involvement in market, you can't make the money. So get involve in the market, get interest in the market. Always keep positive & winning attitude.
- Technicals. if you knows bit about technicals, you will know what man is doing right now. If you don't know technicals, try to learn it. Believe me or not, only this tool will help you througout the market.
- You should not trade on news but you should not ignore it as well. Most of the news are announced by agents.
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